Page 137 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

damaged in an accident and are replaced with new parts,
the new price will not be paid but the new cost will be
depreciated for age of the vehicle i.e. new less
depreciation; and the balance paid.

Loss or damage of accessories are covered only if the
accessories are on the motor. For example, in case the
accessories are detached and kept separately in a garage
and are destroyed as a result of fire to the garage, they
will not be covered by the policy. The term "accessories"
does not apply to the engine or a car, for it is an essential
part of the vehicle.

In the case of two wheelers theft of accessories are
not covered unless the vehicle is stolen at the same time.
This can be covered as an add-on by charging additional
premium.

There is, however, no satisfactory definition of the word
"accessory", and generally those parts which are directly
supplied by the manufacturer along with the car, but
which are not essential for the running of the motor car,
are considered as accessories.

It should be noted that music systems, air-conditioners
and other electric or electronic items, etc. which are
fitted nowadays by the motor car owners on their cars,

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